NEW DELHI (CoinChapter.com) — The crypto market rebounded sharply on Monday, with Bitcoin (BTC) prices closing above $30,000 for the first time in eight days. The uptrend comes after a record nine red weeks for the pioneer cryptocurrency.
The overall crypto market capitalization recovered 7.5% intraday on May 30 to close the day at $1.3 trillion. Ethereum (ETH) prices also rallied to break past $2,000 before pulling back. However, WAVES was the best performer among the top 100 cryptos by market cap, jumping 109% to reach $9.65.
Crypto markets enjoyed a relief rally after nearly two months of heavy selling. To recap, U.S. Federal Reserve’s efforts to rein in inflation, coupled with the Russia-Ukraine war and the rising commodity prices, have taken a toll on risk assets globally.
The cryptocurrency market cap swung up on Monday. Source: Tradingview.com
Meanwhile, stock markets are holding strong with insider stock purchases rising at a rate last seen since the early days of the Covid-19 pandemic.
According to investment research platform Veritydata, insider buying amongst executives in the S&P 500 companies has been strongest since Mar 2020. In detail, traders usually consider strong insider buying a strong sign of market bottoms.
Insiders are saying ‘we don’t see a massive event coming’ . . . [that] these are really good buying opportunities. This is just another confirming data point that should be positive for the market over six to 12 months if not longer
David Giroux, portfolio manager at T Rowe Price, told FT
The correlation between Bitcoin and the stock market decoupled last week. The Standards and Poor’s 500 (S&P 500) recorded gains of 6.94% in the week ending May 29, while BTC prices fell 8.6% between the weekly high ($30,628) and low ($28,003) levels.
However, the relief might be a bounce, considering the market’s recent trend and the investors’ extremely bearish sentiment. In addition, investors believe the decoupling might be crypto failing to recover from LUNA-collapse-led sell-offs while traditional markets enjoy a relief rally.
Seeing lots of tweets about stocks & crypto decoupling, and crypto not bouncing with stocks.
Charting gives a better picture of what's happening:
1/ We had high correlation 2/ Luna collapse leads to more severe crypto selloff 3/ Post collapse crypto not making up the difference pic.twitter.com/HpbFK7hdSd
Bitcoin’s narrative as digital gold took a hit when the prime crypto’s correlation with traditional markets spiked. As a result, traders hoped for BTC’s decoupling from the traditional stock markets.
Ideally, a decoupling would mean bitcoin’s price diverges from equities and starts going up when equities go down. However, last week’s decoupling saw Bitcoin tanking while SPX gained, leading some investors to call the event a reverse decoupling.
The crypto market’s resurgence since May 30 might have resulted from investors’ gaining confidence from the stock market rebound. However, analysts advise taking the price action with a ‘grain of salt,‘ given the bearish outlook of macro cues.
Inflation reports from Spain and Germany highlighted that the macroeconomic forces dampening crypto price action are unlikely to cease soon. The European Central Bank might be forced to remove the Covid-induced stimulus, which would force countries to raise interest rates.
Rising interest rates would likely trigger a sell-off in Bitcoin and other risk assets again. Hence, the recent crypto market rebound might not be long-lived.
A Delhi-based Markets writer, I did my bachelor's in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.
A crypto investor has alleged crypto exchange KuCoin of illegally earing over $33 million through arbitration for 11 hours....
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.